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Hess shrinks loss despite lower output

U.S. oil and gas company Hess Corporation managed to reduce its loss in the last quarter of 2020 compared to the prior-year period despite lower production.

Hess on Wednesday reported a net loss of $97 million in the fourth quarter of 2020, compared with a net loss of $222 million in the fourth quarter of 2019.

On an adjusted basis, Hess reported a net loss of $176 million in the fourth quarter of 2020, compared with an adjusted net loss of $180 million in the prior-year quarter.

CEO John Hess said: “In 2021, our priorities remain to preserve cash, capability and the long term value of our assets, with more than 80 per cent of our capital expenditures allocated to our high return investments in Guyana and the Bakken”.

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Net production, excluding Libya, was 309,000 boepd in the fourth quarter of 2020, compared with 316,000 boepd in the fourth quarter of 2019.

Production from Libya resumed in the fourth quarter of 2020 and averaged a net rate of 12,000 boepd compared with 22,000 boepd in the fourth quarter of 2019.

E&P capital and exploratory expenditures were $371 million in the fourth quarter of 2020, down from $876 million in the prior-year quarter. The decrease is primarily driven by a reduced rig count in the Bakken and lower activity in the Gulf of Mexico.